Metaldyne Takes Further Restructuring Actions

PLYMOUTH, Mich., January 8, 2009: Metaldyne Corporation, an Asahi Tec company, took several actions in 2008 to reduce structural costs, balance capacity with declining vehicle production and create a more agile and streamlined organization focused on its core product lines. These actions will help the company deliver its Plan to Win, which is aimed at creating value for Metaldyne stakeholders.

Metaldyne today announced it will further rationalize its headquarters operations in Plymouth, Mich. Since January 2008 the company has significantly reduced its headquarters staff. In addition, Metaldyne eliminated a separate leased facility, which housed its North American Chassis Products business unit, and consolidated that operation into another Metaldyne building in Plymouth. It will now further consolidate its operations in Plymouth by merging its headquarters facility into that same building. The move is expected to be completed by mid-2009.

"With this move we will have rationalized from three headquarters facilities in Plymouth to one facility, which not only saves expenses but better streamlines how we will operate as a company," said Thomas A. Amato, chairman and CEO of Metaldyne and co-CEO of Asahi Tec. "This is another step in our plan to focus our resources on our manufacturing operations, processes and product technologies."

In addition, Metaldyne required all U.S. salaried employees to purchase a two-week vacation in the first quarter of 2009, significantly reduced travel, eliminated merit increases for 2009 and suspended its 401k match and retirement contribution.

"We took a holistic view of the global marketplace and have taken the actions necessary to improve Metaldyne's performance given the challenging market," said Amato.

Additionally, on November 28, 2008 Metaldyne successfully completed the sale of its GLO S.r.L. operation in Poggio Rusco, Italy, to AB SKF of Goteborg, Sweden.

"One of the major initiatives of the Plan to Win is to concentrate on our core products," said Amato. "We are pleased to see this transaction completed as it is another step towards improving the focus of our business units."

GLO designs, develops and produces constant velocity joints for the aftermarket and OEM automotive industry. The SKF Group is a global supplier of products, solutions and services in the area comprising rolling bearings, seals, mechatronics, services and lubrication systems. The transaction was announced in September and closed upon clearing regulatory approvals in Europe.

Over the past year Metaldyne has taken several other actions to reduce costs that include plant consolidations, workforce reductions and a tender offer to buy back the company's outstanding bonds. The tender offer was successfully completed in November 2008.